September 1, 1999
To:Works Committee
From:Barry H. Gutteridge
Commissioner, Works and Emergency Services
Subject:Toronto Integrated Solid Waste Resource Management Process
Request for Proposals for Disposal Services
Purpose:
The purpose of this report is to seek Council authority to issue the Toronto Integrated Solid Waste Resource Management
Process ("TIRM") Request for Proposals ("RFP") for Disposal Services.
Funding Sources, Financial Implications and Impact Statement:
There are no direct financial considerations arising from this report.
Recommendation:
It is recommended that the Toronto Integrated Solid Waste Resource Management Process Request for Proposals for
Disposal Services be approved for issuance on or about October 4, 1999, substantially in accordance with the Request for
Proposals document attached to this report as Appendix "A".
Council Reference/Background/History:
On October 2, 1998, City Council provided direction to the Commissioner of Works and Emergency Services to:
"¼ immediately proceed to engage the marketplace to secure solid waste management options including waste diversion
and disposal capacity to meet the City's long-term requirements through a Request for Expressions of Interest and Request
for Proposals process based on the work undertaken in the planning process to date, but without proceeding to the
submission of an environmental assessment." (Clause No. 2 of Report No. 8 of the Works and Utilities Committee).
In addition, City Council provided direction on a comprehensive range of policy and operational matters, which are
summarized below:
the establishment of a 50 percent diversion rate by the year 2006 or sooner;
inclusion of potential export to the United States;
inclusion of Energy from Waste ("EFW") technology as a marketplace option;
engagement of Regional governments in the Greater Toronto Area as potential partners with Toronto for future disposal
capacity contracts;
active consideration of potential partnership proposals with Toronto that may contain a range of options including
transfer of ownership or leasing arrangements; and
preparation of a planning process to engage the marketplace that includes public and industry consultation and
development of multi-faceted evaluation criteria.
Policies regarding potential partnership with other members of the GTA (through the Memorandum of Understanding) and
the introduction of a prohibition against lobbying were adopted by Council at its meeting of April 13, 14, and 15, 1999. At
that time Council also adopted recommendations regarding:
the introduction of options for 5, 10, 15, and 20-year timeframes for provision of disposal capacity;
the right of Toronto to engage in a subsequent tender for the haulage component from our transfer stations by third party
haulers in order to broaden the potential marketplace response for the transport component;
the right of Toronto to maintain a role for its public sector employees in the haulage component of the project, based on
the existing levels of staff and equipment involved in the haulage of waste from Toronto's transfer stations to the Keele
Valley Landfill Site; and
the inclusion of a preferred customer clause to ensure that the price(s) charged to Toronto remain competitive over the
contract timeframe.
Council also approved at its meeting of April 13, 14, and 15, 1999, the issuance of the Request for Expressions of Interest
("REOI") document for three categories: Category 1. Proven Diversion; Category 2. Proven Disposal; and Category 3. New
and Emerging Technologies.
On April 26, 1999, the TIRM REOI was issued as per the Council approved schedule. The TIRM REOI closed on May 31,
1999. A subsequent report dated July 5, 1999 from the Commissioner of Works and Emergency Services, provided
members of the Works Committee and Toronto City Council with the results of the application of the evaluation criteria to
the thirty-two (32) submissions received in response to the TIRM REOI. Of the thirty-two responses received, twenty-three
(23) were identified as qualified to proceed to the Request for Proposals ("RFP") stage (TIRM - Stage 3).
Comments and/or Discussion and/or Justification:
The attached RFP for solid waste disposal services has incorporated the body of policy decisions made by Council during
the course of the TIRM process. The RFP is designed to provide the City with new disposal capacity on January 1, 2002, in
order to dovetail with the projected closure of the Keele Valley Landfill Site in 2002.
The RFP is designed to provide the City with sufficient flexibility through the contractual process to meet the Council
policy of 50 percent diversion by 2006 or sooner, and too possibly proceed beyond 50 percent diversion through the course
of the planning period.
Also listed on this agenda is a report recommending the hiring of MacViro Consultants Inc., to assist staff in the
preparation of an RFP for Diversion Services. As per the Council schedule, the Diversion RFP will be prepared for
submission to the November 1999 meeting of Council.
On July 27, 28, and 29, 1999, City Council adopted recommended amendments to the TIRM project schedule. The
amendments enhance the integration of the RFP processes for acquiring new disposal capacity and diversion capacity. The
amendments will provide Council with the ability to make decisions in an integrated and comprehensive fashion.
Development and Application of Evaluation Criteria
The RFP for disposal services contains evaluation criteria in three categories:
Human Health and Safety, Natural Environment;
Ontario and GTA Social Benefits; and Financial.
These categories are weighted at 35, 30, and 35 points respectively. The evaluation criteria will be applied to the
Respondents' service proposals. The service proposal will consist of the Respondents' technical (environmental) proposal,
price proposal (fee per tonne), and any exceptions and partnership offers.
The evaluation criteria from the first two categories (Human Health and Safety and Natural Environment and Ontario and
GTA Social Benefits) will be applied to the technical performance information provided in the proposals (Envelope No. 1)
without any reference to the information provided under the third category, Financial. After this initial step, the results of
the application of the Financial evaluation criteria (Envelope No. 2) will be "aggregated" with the results of the first two
categories to produce an overall ranking.
The top-ranked submissions will then be carried forward to City Council and will include a summary of any partnership
proposals (Envelope No. 3) that may have accompanied the top-ranked submissions. At that time we will seek Council's
authorization to proceed with due diligence and contract negotiations.
The project schedule calls for the top-qualified proposals to be before Council in February 2000, with a recommendation(s)
regarding engagement in contracts in June 2000.
Another report listed on the September 8, 1999 Agenda of Works Committee provides a summary of the stakeholder
consultation process regarding the evaluation criteria for the RFP for disposal services.
Conclusions:
We are recommending that Council approve the issuance on or about October 4, 1999 the TIRM RFP for Disposal
Services, substantially in accordance with the RFP document attached to this report as Appendix "A". The RFP for
Disposal Services is scheduled to close on December 15, 1999. A list of top-qualified Respondents is then scheduled to be
recommended to Council in February 2000, with recommendations for contracting to come before Council in June 2000,
following the due diligence process and contract negotiations.
Contact Name:
Lawson Oates, B.A., M.E.S.
Manager, Strategic Planning
Solid Waste Management Services
Works and Emergency Services
Metro Hall, 19th Floor
Phone: 392-9744
Fax: 392-4754
E-mail: lawson_oates@toronto.ca
Angelos BacopoulosBarry H. Gutteridge
General ManagerCommissioner
Solid Waste Management ServicesWorks and Emergency Services
LJO/ljo:nd/rfp1.doc
Appendix A.
RFP for Proven Disposal Services
